POLICY AND PROCEDURES- PERSONAL NEEDS FUNDS
Applicable standard or regulation:
(Section 25.05-6-411 C.R.S. and 10 C.C.R. 25-05-10 8.609.5)
Proper management of personal funds and personal property is critical to the following.
- Implementing and advancing the service delivery system’s goals of providing persons with a developmental disability the full opportunity to be included in community life, to make increasingly sophisticated and responsible choices, to exert greater control over his or her life, to establish and maintain relationships and a sense of belonging, to experience personal security and self-respect, and to develop and exercise competencies and talents.
- Ensuring that the rights of a person to manage his or her own money and to be free from exploitation and abuse are upheld.
- Establishing practices that, when followed, offer providers and legally authorized representatives protection against improper use or mismanagement of funds.
- As a condition of participation in the Home and Community Based program, Angel’s Service LLC will handle the personal needs funds of the individual who may not be able to manage the funds for themselves. If the individual elects to have the provider handle the personal needs funds, they or their legally authorized representative and the residential provider must sign an Authorization Form (PNF-2 or 3). This form assigns the provider fiduciary responsibility for the safeguarding and care and management of the individual’s funds.
- Individuals who do not wish their funds to be managed by the provider must sign the Exclusion Agreement (PNF-1).
- Angel’s Service LLC shall maintain a system of accounting for expenditures from an individual’s personal needs funds.
- All accounts, and the original bank statements, will be maintained for audit by the Angel’s Service LLC.
- Individual account ledgers will be maintained by the designated Angel’s Service LLC personnel and on file for an individual’s personal needs funds. These ledgers will
- Identify all withdrawals and deposits;
- Contain appropriate authorizing signatures for each withdrawal or deposit;
- Be available for review and auditing, upon request, by the individual, his or her legally authorized representative, the case management agency, DIDD or its designees;
- Account for all personal needs funds under the control of Angel’s Service LLC including petty cash, trust fund accounts, and individual checking or saving accounts where the provider cosigns withdrawals.
- Personal needs funds shall not be turned over to persons other than the individual in services or his or her legally authorized representative. With the written consent of the individual in services (if she or he is able and willing to give such consent), Angel’s Service LLC may turn over an individual’s personal needs funds to a close relative or friend to purchase a particular item. However, the relative or friend is required to sign for the funds acknowledging their responsibility to appropriately account for the funds by way of receipts as defined herein.
- When Angel’s Service LLC has access to or control over an individual’s funds, use of those funds to lend money to another person in services or anyone else is strictly prohibited. Angel’s Service LLC shall maintain petty cash on hand for staff, or provide staff with other access to cash, to cover unexpected needs or circumstances.
- The loaning of money between two people in services where Angel’s Service LLC does not have access or control over an individual’s funds is between those two parties.
- Angel’s Service LLC must maintain receipts for all expenditures of $5.00 or more. Angel’s Service LLC may attempt to maintain receipts for withdrawals under $5.00. Receipts must comply with the definition of receipt as stated herein. Alone, cancelled checks and/or check carbons do not satisfy the receipt requirement.
- In instances where an individual is being supported in money management, a weekly or monthly written, itemized receipt signed by the individual shall be an acceptable receipt for withdrawals. The weekly or monthly budgeted amount must be expressly stated in the SP.
- In an instance where a personal needs trust fund is being used the following practices will be followed (25.5-6-411).
- All personal needs funds shall be held in trust by a residential facility authorized to provide services pursuant to this part 4, or its designated trustee, separate and apart from any other funds of the facility, in a checking account or savings account or any combination thereof established to protect and separate the personal needs funds of the clients.
- At all times, the principal and all income derived from said principal in the personal needs trust fund shall remain the property of the participating clients, and the facility or its designated trustee is bound by all of the duties imposed by law upon fiduciaries in the handling of such fund including accounting for all expenditures from the fund.
- When personal needs funds are used to purchase items that are not for the “exclusive” use of the individual Angel’s Service LLC shall utilize the Purchase Consent form (PNF-4). The form shall be signed by the individual to document his or her consent.
When SSI or SSA funds are used for a “group purchase”, prior approval by SSA may be necessary. (Refer to Appendix E for conditions for Group Home Purchases. These requests should be directed to: Serena Akinahew, owner of Angels Service LLC.
Revision History:Published 12/29/2016 by Serena Akinahew